Construction Entrepreneurs Request Government to Extend Project Deadlines Amid Rising Costs

The Koshi Province Construction Entrepreneurs Federation has reported that instability in international markets, along with shortages and price hikes of construction materials, has put the infrastructure construction sector in crisis. Jana Sevak Bhandari, president of the federation, revealed that the ongoing conflict in the Middle East has caused fuel prices to rise by 60 percent and other material costs by 40 percent. The federation has urged the government to adjust prices, extend project deadlines, and control black market activities.

Biratnagar, 13 Baisakh – Instability in international markets has significantly affected infrastructure construction work in Koshi Province. Due to shortages of construction materials and soaring prices, the sector is facing a severe crisis. The Koshi Province Construction Entrepreneurs Federation warned at a press conference in Biratnagar on Sunday that without immediate government intervention, development projects could come to a halt.

The entrepreneurs have requested the government to adjust prices and extend project deadlines by at least one year to address the ongoing crisis. According to federation president Jana Sevak Bhandari, the war and tensions in the Middle East have unnaturally increased fuel prices on the international market, directly impacting Nepal’s construction industry. “Fuel prices have increased by approximately 60 percent over the last two months,” stated Bhandari. “Essential materials such as bitumen, cement, and rods have seen price increases of 40 percent.”

Alongside rising costs, Bhandari noted that materials are also becoming scarce in the market. The federation has expressed concern that construction work, typically active from mid-February to mid-June, is at risk of being halted. Senior Vice President Keshar Kumar Budhathoki explained that discrepancies exist between the central bank’s price index and actual market prices. Entrepreneurs have emphasized that the impact of price increases ranges from small contracts to nationally significant projects.

The federation has put forth several demands: immediate price adjustments on all contracts based on real market prices, extension of deadlines for stalled projects by at least one year, and stringent measures to prevent artificial scarcity and black market practices of construction materials.